For about twenty years Toronto has seen unprecedented growth in condominium towers. During this time there has been little in the way of new rental building construction.
A primary reason for this was an unending demand from those who want to own their home.
With the price of home ownership now being so high, demand for rental accommodation has been increasing. Developers have taken notice and are building more buildings for rental properties.
In early 2015 there were eight large rental buildings under construction in Toronto and another 37 proposed. This total of 11,000 rental units is a 75% increase over the number of new rental units built during the prior ten years.
With rents increasing 15% over the past five years, developers now feel that investing in rental properties makes sense.
Renting in a rental building instead of a condominium provides renters with security of tenancy. They are less likely to be forced to leave at the end of a rental term. The problem thus far has been a shortage of quality rental buildings with suites and amenities comparable to condominiums.
As more quality rental properties become available, condo corporations may see a reduction in the number of condo suites being rented. This transition of condos from being rental properties is viewed as beneficial to those who equate condo ownership with home ownership.